GCore
GCore
expanding horizons:
my impact on business growth & client diversification
Gcore, a global provider of hosting, CDN, and cloud services, faced a major challenge: an overreliance on a single client. This dependence led to financial losses due to unused equipment. The problem? Our main client, Wargaming, only wanted the latest and greatest technology. This meant our perfectly functional 3-5 year old equipment was relegated to the warehouse, gathering dust and costing the company money.
To turn the tide, the CEO brought me on board to spearhead a brand-new project aimed at attracting a wider range of customers and finally putting that outdated equipment to good use. I joined Gcore back in 2016 with the mission of setting up a hosting department and tackling this overdependence on Wargaming. The CEO's vision was to diversify the client base while also finding a way to utilize the older equipment that was still functional but no longer met Wargaming's standards.
The existing Gcore team hadn't cracked the code on solving these issues effectively. Recognizing the need for a fresh approach, I decided to build a separate hosting project with the intention of eventually integrating it into the company's existing structure.
Launching a pilot product is like spinning plates – it demands multitasking, quick thinking, and resourcefulness. Startups rarely have the luxury of large teams and deep pockets, so it's essential to squeeze the most out of limited time and resources.
- Building the Tech FoundationI acted as the architect, choosing and setting up the technology that would power our hosting platform.
- Creating an Online PresenceI built the project website from the ground up and filled it with all the necessary information.
- Getting the Equipment OnlineI personally installed and configured the first set of servers in Moscow, getting our physical infrastructure ready to go.
- Taking Care of the Business SideI worked with accounting teams in both Russia and Europe and brought in legal experts to ensure we were following all the rules and set up the right financial structures.
- Spreading the WordI launched online ad campaigns to attract initial interest and listed our project in directories where people search for hosting services.
- Supporting SalesI shared my product knowledge with the sales team and helped them understand the ins and outs so they could best advise potential customers.
By looking at demand and studying who our ideal customers were, I strategically expanded our VM options to different parts of the world. This data-driven approach helped me provide the best solutions that matched what customers wanted and were willing to pay for.
A colleague of mine once compared the hosting industry to a sewer – full of bad actors like scammers, people who launch cyberattacks, and those who misuse the services, along with the good guys. While I understood the challenges of dealing with such a mixed bag of customers, I also saw a small but valuable group of legitimate clients who valued quality service and offered the potential for long-term, win-win partnership.
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Maximizing cash flow
Leveraging the high-volume, low-margin nature of hosting services to generate substantial cash flow and scale the customer base. The idea is that the sheer volume of customers makes up for the lower profit per customer, leading to a significant overall cash flow.
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Mitigating risks
Implementing innovative solutions to minimize disruptions caused by malicious actors. For instance, designated "Gulag" nodes within each cluster served to isolate problematic users, preventing them from impacting legitimate customers.
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Customer segmentation
Identifying and prioritizing "white" customers for relationship building and preferential resource allocation to ensure superior service quality. These "white" customers are characterized by their reliability and responsible behavior.
The secret sauce behind this business model's growth is twofold: a global infrastructure and the ability to separate different types of customers within each location. Basically, we serve a large volume of less-than-ideal clients while making sure they don't negatively impact each other. This allows us to refine our processes and build a strong team, so we're ready to deliver top-notch service to high-value clients when they come along. It's a continuous cycle of acquiring customers, providing service, and improving – a recipe for sustainable growth.
Initially, the project was mainly backed by Gcore's CEO. But as its potential and success became clear, people from various departments jumped on board. I helped bring these teams together and integrate them into our existing hosting processes. This collaboration, along with our expanding customer base, led to a massive team growth, exceeding 100 members.
What's more, the hosting project acted as a springboard for attracting customers in related areas like dedicated servers, cloud CDN, DDoS protection, and AI solutions.
Over five years, the hosting division blossomed into a profitable and valuable part of the business, playing a crucial role in diversifying Gcore's customer base and reducing our reliance on Wargaming. Today, Gcore is a multifaceted service provider, serving thousands of clients around the world.
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